BHP Group is scaling back key decarbonization projects in its Western Australian iron ore operations, slowing a climate strategy that the miner had once positioned as central to its long-term growth plans, according to leaked internal documents cited by the Guardian and ABC's Four Corners.
Details of the Pullback
The documents reveal that the world's biggest miner shelved a board-approved solar and battery project at its Jimblebar iron ore mine and deferred a 500 megawatt solar, wind, and battery system. BHP also abandoned plans for a lower-emissions iron ore processing facility that had the potential to prevent 1.7 million tons of emissions annually, according to the report.
Industry-Wide Trend
Companies across sectors from banking to airlines and energy producers have recently taken steps to dilute commitments to emissions reduction amid rising costs, a lack of available technologies, or political pressure. Rio Tinto Group, BHP's largest competitor, in December lowered its estimated spending through 2030 on decarbonization to US$1 billion to US$2 billion, from a previous estimate of as much as US$6 billion.
BHP's Progress and Challenges
As of mid-2025, BHP reduced emissions by 36 percent from the firm's 2020 baseline, with progress driven by shifting 70 percent of the company's total electricity use to renewable sources, a spokesperson said. However, many of the technologies the resources industry will need to achieve net zero—notably in heavy earth moving and bulk logistics equipment—"are not yet ready to be deployed," the spokesperson added.
BHP is running trials with its partners of battery-electric haul trucks and locomotives to "support the acceleration of this technology," the spokesperson said.
Investor and Environmental Scrutiny
The rollback is likely to intensify scrutiny from investors and environmental groups, who argue that the company's spending decisions could influence the pace of the nation's decarbonization ambitions.
